DragonWave Closes Acquisition of Nokia Siemens Networks'

DragonWave Closes Acquisition of Nokia Siemens Networks' Microwave
Transport Business in China
OTTAWA, CANADA -- (Marketwire) -- 11/30/12 -- DragonWave Inc.
(TSX:DWI)(NASDAQ:DRWI) a leading global supplier of packet microwave
radio systems for mobile and access networks, today announced that
the company has completed the transaction to acquire certain Chinese
operations of Nokia Siemens Networks' microwave transport business in
China as all Chinese regulatory requirements have been met.
Approximately 100 employees of Nokia Siemens Networks based in
Shanghai have transferred to DragonWave. "We want to welcome our new
colleagues in China to the DragonWave team" said Peter Allen,
DragonWave President and CEO. As previously communicated, the overall
closing of the transaction took place on June 1, 2012.
About DragonWave
DragonWave(R) is a leading provider of high-capacity packet microwave
solutions that drive next-generation IP networks. DragonWave's
carrier-grade point-to-point packet microwave systems transmit
broadband voice, video and data, enabling service providers,
government agencies, enterprises and other organizations to meet
their increasing bandwidth requirements rapidly and affordably. The
principal application of DragonWave's products is wireless network
backhaul. Additional solutions include leased line replacement, last
mile fiber extension and enterprise networks. DragonWave's corporate
headquarters is located in Ottawa, Ontario, with sales locations in
Europe, Asia, the Middle East and North America. For more
information, visit http://www.dragonwaveinc.com.
Forward-Looking Information
Certain statements in this release constitute forward-looking
information within the meaning of applicable securities laws.
Forward-looking information includes, without limitation, statements
as to growth opportunities and the potential benefits associated with
DragonWave's acquisition of the microwave transport business
including its associated operational support system (OSS) and related
support functions (collectively, the "Business") for either Nokia
Siemens Networks or DragonWave (referred to below as the "parties")
and expectations regarding the business relationship between the
parties. Forward-looking information is based on certain assumptions,
including: the parties' beliefs regarding the industry and markets in
which they operate and expectations regarding potential synergies and
prospects for the Business. This forward-looking information is
identified by the use of terms and phrases such as "believe",
"expect", "anticipate", "foresee", "target", "estimate", "designed",
"plans", "will" or similar expressions. This acquisition is subject
to risks and uncertainties including: that the expected synergies
will not materialize, that unexpected costs will be incurred to
integrate the Business, or that end-customer demand will not meet
expectations. In particular, material risks and uncertainties for
DragonWave following closing of the acquisition will include, without
limitation:
-- reliance on Nokia Siemens Networks for a large percentage of
DragonWave's revenues;
-- increased cash requirements to fund acquired operations, and associated
requirements to comply with debt financing covenants with DragonWave's
lenders, which should be understood in light of DragonWave's history of
losses;
-- increased exposure to global currency fluctuations;
-- increased regulatory compliance obligations, including financial
reporting obligations; and
-- risks associated with acquisitions generally as detailed on pages 19 to
21 of DragonWave's Annual Information Form dated May 11, 2012 (the
"AIF").
Other risks relating to DragonWave's business and industry can be
found in the public documents filed by DragonWave with U.S. and
Canadian securities regulatory authorities, including the AIF. These
and other risks could cause DragonWave's actual results, performance,
achievements and developments to differ materially from the results,
performance, achievements or developments expressed or implied by
such forward-looking information. Readers are cautioned not to place
undue reliance on forward-looking information. DragonWave assumes no
obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise,
except as expressly required by law.
Contacts:
Nadine Kittle
Marketing Communications
DragonWave Inc.
nkittle@dragonwaveinc.com
613-599-9991 ext 2262
John Lawlor
VP Investor Relations
DragonWave Inc.
jlawlor@dragonwaveinc.com
613-895-7000
Becky Obbema
Interprose Public Relations
(for DragonWave)
Becky.Obbema@interprosepr.com
(408) 778-2024